Cloudera to be Taken Private - InvestingChannel

Cloudera to be Taken Private

Private-equity firms KKR (NYSE:KKR) and Clayton Dubilier & Rice will take Cloudera (NYSE: CLDR) private for $4.7 billion, the cloud-based data analytics company said on Tuesday.

The $16-per-share cash offer represents a premium of over 24% to Cloudera’s last close on Friday, the company said in a regulatory filing.

Cloudera, which provides cloud-based software and platform to enterprises for data management and insights generation, caters to industries including finance, healthcare and government agencies.

Said CEO Rob Bearden, “This transaction provides substantial and certain value to our shareholders while also accelerating Cloudera’s long-term path to hybrid cloud leadership for analytics that span the complete data lifecycle – from the Edge to AI.

“We believe that as a private company with the expertise and support of experienced investors such as CD&R and KKR, Cloudera will have the resources and flexibility to drive product-led growth and expand our addressable market opportunity.”

With an uptick in demand for cloud-based services since the pandemic last year, major cloud services providers including Amazon.com (NASDAQ:AMZN), Alphabet’s Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) have been pushing to provide products similar to ones offered by Cloudera.

Bloomberg Law reported that Cloudera has been exploring a sale after getting takeover interest.

Activist investor Carl Icahn holds about 17.8% of Cloudera’s total shares and is its largest investor, according to Refinitiv data.

The deal, expected to close in the second half of this year, includes a 30-day “go-shop” period, which allows the company to consider alternative offers, Cloudera said.

KKR shares gained 72 cents, or 1.3%, to $56.41, while those for CLDR galloped $3.05, or 23.7%, to $15.91.

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